Economic risks mount as political impasse drags on

Wednesday, October 09, 2013 - 02:17

Oct. 09- As the crisis over the U.S. government shutdown threatens to engulf a much more treacherous deadline over the debt ceiling, U.S. businesses, consumers and global investors are already showing signs of strain. Bobbi Rebell reports.

▲ Hide Transcript

▶ View Transcript

Then new business as usual in Washington but for the rest of the country that new business as usual is starting to hurt. Lock key which is the largest information technology provider to the government still has 2400 furloughed workers. They can't work because the government facilities they work at -- closed. Plant sales at Boeing and Airbus are being blocked even though some furloughed workers are being recalled because the aim registry remains closed. Humana the managed care companies saying the government shutdown would delay payments related to its military health services contract. And they could be -- level for up to a 175. Million dollars worth of claims. And economic confidence is deteriorating it's gotten -- the past week during a partial government check out. Any any week since the Lehman Brothers collapsed back on September 15 2008. But -- coffin at UBS says how Americans say they feel and what they actually do aren't always the same. It seems as if these fiscal policy fights -- confidence more than they -- spending that for spending this. Could be damaged when they -- greater -- income and then and we're likely to see this time around and in -- we don't expect big consumer spending. Office but spending nine houses a growing concern. Part of the background check to get a mortgage involves an income check but without the IRS the Mortgage Bankers Association says a growing number of loans are being held up. As are some mergers no Federal Trade Commission to give the thumbs up or down. In the futures markets has set down has cut funding for surveillance. Leaving some markets without the usual policing. And regulators say trillions of dollars of derivatives are changing hands virtually unsupervised. And did not just the US economy at -- -- finance minister Filip and I need. Tells Reuters that if there is a breach of the US debt ceiling there will be widespread ramifications. It wouldn't agree degrees as soon -- equally. That's fifty year. If US lawmakers failed to break the political impasse it won't just be the US government grinding to a halt but the global economy. As well.

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products: